On the surface, cost-reimbursement contracting offers the government and contractors a direct route to success. Most often used when the cost of a particular procurement is too uncertain for a fixed-price contract, the process seems simple enough: contractors are reimbursed for allowable and properly allocated costs, the government is limited in its obligation to reimburse costs over a certain limit and both sides follow specific procedures at every stage.
Beneath the surface, however, are uncertainties and the potential for significant problems, particularly in contract formation and administration. How, for instance, do government representatives show that a cost-reimbursement contract is indeed the most advantageous, lowest-cost route to take for a particular project? What type of cost-reimbursement contract is best for the circumstances? How will proposal evaluation and source selection occur if costs are uncertain? What monitoring is necessary to ensure that costs are reasonable, controlled and based on efficient practices? This course answers these questions, and more.
The course is a complete cost-reimbursement contracting guide. It provides government and industry personnel with the practical guidance needed to understand and then efficiently manage cost-reimbursement contracts. To ensure maximum learning, the course will be supplemented with case studies and exercises that demonstrate practical, on-the-job applications of the material.